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vova2212 [387]
3 years ago
14

On January 1, Year 1, the Starshina Company paid $25,000 for a photocopier with an estimated useful life of 4 years, and an esti

mated residual value of $5,000. The company uses the straight-line method. What is the amount of depreciation expense for Year 2?
Business
1 answer:
sladkih [1.3K]3 years ago
4 0

Answer:

The amount of depreciation expense for Year 2 is $ 10,000.

Explanation:

<u>Determine the rate of depreciation per year.</u>

Rate of depreciation = depreciation base/Useful life

Useful life = 4 years

Depreciation base = Acquisition cost - Residual/Salvage value

Depreciation base = 25.000 - 5,000

Therefore depreciation base = $20,000

Rate of depreciation = depreciation base/Useful life

Rate of depreciation = 20,000 / 4

Rate of depreciation = $ 5,000.

<u>Determine the amount of depreciation expense for year 2. </u>

Amount of depreciation expense = Rate of depreciation × Number years

Amount of depreciation expense = 5,000 ×  2

Amount of depreciation expense = $10, 000.

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What is the term used to describe an organization in which positions are awarded based on one's ability and skill?
kykrilka [37]
The term you're looking for is meritocracy.
7 0
3 years ago
ABC Co. uses a perpetual inventory system and uses the FIFO cost flow assumption. During the month, it had two sales. Calculate
Free_Kalibri [48]

The cost of goods sold in dollars for the first sale made on Jan. 10, using FIFO, is <u>$141</u>.

<h3>What is the FIFO method?</h3>

FIFO means First-in, First-out.  

The FIFO inventory method assumes that the Jan. 10 sales of 11 units were made from goods in stock on January 1 and the purchase on Jan. 5.

Using FIFO under the perpetual inventory system, the cost of goods sold on Jan. 10 is calculated as follows:

<h3>Question Completion Data and Calculations:</h3>

Jan 1 Beginning Inventory 8 at $12= $96

Jan 5 Purchase 12 at $15= $180

Jan 25 Purchase 10 at $18= $180

Jan 10 Sale 11 units x $50 each

Jan 30 Sale 3 units x $55 each

Cost of goods sold on Jan. 10 using FIFO = 141 (8 x $12 + 3 x $15)

Thus, the cost of goods sold in dollars for the first sale made on Jan. 10, using FIFO, is <u>$141</u>.

Learn more about the FIFO method at brainly.com/question/11493725

#SPJ1

8 0
2 years ago
On January 8, Lowrence Co. issued a $60,000, 120-day discounted note to Raines Bank. The discount rate is 8%. Assuming a 360-day
Salsk061 [2.6K]

Answer:

a. $58,400

Explanation:

A discounted note, will make the person receive a lesser amount than the amount due at maturity. This way the person who grants the note is receiving interest for borrowing.

<em><u>Calculations</u></em>

principal x discount rate x time = discount

<em><u>Where</u></em> rate and time should be expressed in the same metric IE if the rate is annual express time in portion of years if it is monthly, in months.

60,000 x 0.08 x 120/360 = 1,600

Now, we subtract this amount form the nominal:

nominal - discount = net

60,000 - 1,600 = <u>58,400</u>

6 0
3 years ago
Read 2 more answers
New England Co. had net cash provided by operating activities of $351,000; net cash used by investing activities of $420,000; an
Zinaida [17]

Answer:

New England's cash balance at the end of the year is $208,000

Explanation:

The computation of the ending cash balance is shown below:

Ending cash balance = Net cash provided by operating activities + net cash used by investing activities + cash provided by financing activities + beginning cash balance

= $351,000 - $420,000 + $250,000 + $27,000

= $208,000

We assume the investing activity have made a purchase of fixed assets that's why we deduct it plus it show that the amount is used and the sale amount of land is already included in the investing activity so we do not consider it

7 0
3 years ago
There are two universities, A and B, in a city. Tuition rises at University A and, as a result, the demand for attending Univers
LenaWriter [7]

Answer:

Substitutes

Explanation:

The education services at the two universities are substitutes to each other. The cross price elasticity of substitute goods is positive which indicates that as the price of one good increases then as a result the demand for other good increases and if the price of one good decreases then as a result the demand for other good decreases.

Now, if there is an increase in the tuition fees at University A, hence, this will increase the price of educational services at University A. Therefore, this will lead to an increase in the demand for educational services at University B.

4 0
3 years ago
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